Sundaram Multi Pap Ltd. (SUNDARAM) - Chairman Speech

Company chairman speech

SUNDARAM MULTI PAP LIMITED
ANNUAL REPORT 2010-2011
CHAIRMAN'S REPORT
As I look back on the year gone, I am convinced in my belief that India
will take its rightful place in the world as a global superpower. Despite
crisis and challenges, India's resilience to withstand and weather these
adverse challenges is commendable. Having embarked on the journey towards
economic development, we must face all challenges and obstacles to ensure
that our rightful place in the World should not be compromised.
India's GDF performance continues to be strong and encouraging. The Indian
economy is the eleventh largest economy in the world by nominal GDP and has
the second largest GDP on PPP basis among emerging economies i.e. USD 3.5
trillion. India is the 4th largest economy in the World with a population
of over 1 billion, land area of 3.29 million square kilometers and GDP
Growth of 8.5% has opened up new business opportunities to the world in all
segments of business.
Sundaram posted good results during financial year 2010-11. Sundaram
achieved the net sales of Rs. 191.91 crores as against Rs. 150.29 crores of
the previous year, registering a growth of over 27.69%. The profit after
tax has been higher at Rs. 865.25 lacs registering a growth of over 37%. It
gives me great pleasure to mention that your Company has recommended a
dividend of Rs. 0.20 per equity share of face value of Rs. 1 for this year.
The growth of the paper stationery products directly depends upon the paper
industry and the growing demand for education. Indian Paper Industry has
welcomed the Union Budget Proposal for the year2011-12 and also expressed
its thanks to Mr. Pranab Mukherjee, Hon'ble Finance Minister for presenting
a growth oriented budget, which will definitely fuel growth in the
manufacturing sector when is now on the path of economies revival from the
earlier worse economic recession. The Indian education sector is estimated
to be at USD 28bn in size, and is expected to be USD 47bn over a period of
5-6 years. Private final consumption expenditure on education is on rise.
This shows that with an increase in per capita income, people are willing
to spend more on education once their basic needs of food and clothing are
satisfied. Exciting prospects lie ahead for the Indian Education sector.
These are the growth engines of paper and stationery industry.
The increasing demand for the quality education and massive government
allocation for education segment, K-10 segment is one of the fastest
growing segments comprising of approximately USD40billion Indian Education
Market. It gives me immense pleasure to announce your Company through its
wholly owned subsidiary, namely Sundaram Edusys Pvt. Ltd., has successfully
created a Audio-Visual, Animated 100 % syllabus for students of 1 to 10 of
Maharashtra SSC Board English, Marathi and Semi English medium. Because of
special user friendly features of e-class and through rigorous marketing
strategy, the Company has successfully penetrated the e-class into the
market and the e-class has received an overwhelming response from private
schools, Government Educational Institutes, coaching classes, students and
parents. The Company commenced its commercial sales from February 2011 and
made a total sale of Rs. 2.50 Crores upto the month of 31st March 2011.
My only mission is to provide quality education to every emerging bud of
this nation. Education is every child's birth right and I focus that every
child of our Country should get equivalent quality education irrespective
of geographies and economic backgrounds.
Before I conclude I would like to thank all staff members of your Company
for their support and continuous commitment which is enabling us to
navigate through the bad and good times. I would also like to express my
gratitude to my colleagues, our customers, business associates,
shareholders and member of the Board for their valuable assistance. We will
continue to work for enhancement of stakeholder's value and remain
committed to justify the faith and trust you have reposed on us.
With warm personal regards,
Amrut P. Shah
Chairman & Managing Director